Fondul Proprietatea expects downward revision of NAV along with Hidroelectrica's reevaluation

Franklin Templeton, the manager of Fondul Proprietatea – which owns 20% in the state-controlled company Hidroelectrica, the largest electricity producer in Romania – warns that "there is a high probability" that the Fund will soon report a reduction in its net asset value (NAV) of at least 5%, having as the main reason a new downward revaluation of the value of the participation in Hidroelectrica.

Hidroelectica has a weight of over 78% in the net assets of FP.

Based on preliminary data held by Franklin Templeton, there is a high probability that the next NAV to be reported will be at least 5% lower than the most recent NAV on October 31, 2022, as published by the Fund on November 15, 2022, mainly due to the update of the valuation of the Fund's holding in Hidroelectrica, the company explained, according to Profit.ro.

FP plans to float Hidroelectrica's shares early next year.

(Photo source: Facebook/Hidroelectrica)